RBC eyes contingent coupon barrier autocallables tied to two ETFs

By Sarah Lizee

Olympia, Wash., Oct. 28 – Royal Bank of Canada plans to price autocallable contingent coupon barrier notes due Nov. 3, 2022 linked to the least performing of the SPDR S&P Biotech ETF and the Health Care Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes pay a contingent coupon at an annualized rate of 8.5% to 9.5% if each fund closes at or above its trigger price, 70% of its initial share price, on the observation date for that quarter.

The notes will be called at par if each fund closes at or above its initial share price on any quarterly observation date starting April 29, 2020.

The payout at maturity will be par unless any fund finishes below its trigger price, in which case investors will be exposed to the decline of the least-performing fund from its initial share price.

RBC Capital Markets, LLC is the underwriter.

The notes will price Oct. 29.

The Cusip number is 78015KBG8.

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